Ambuja Cement Limited
Transcript of Ambuja Cement Limited
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PROJECT REPORT N ARKET SURVEY OFEMENT COMPANIES INOPAR AND KURALI
CITIES
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SPECIAL THANKS
To Prof. Monika Thakur because this projectreport could not have been completedwithout her guidance and my industrial
Guide Mr. Sanjeev Nanda of Ambuja
Cement LimitedChandigarh.I am also grateful to Prof. Ms. SHIVALI
DHINGRA, Head ofthe Institute, Amity Global Business School,
Chandigarh, forpermitting me to undertake this study.
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.MBUJA CEMENT Ltd AnntroductionThe Company was Incorporated on 20th
October 1981 as Ambuja Cements Pvt. Ltd.
The Company was converted into a publiclimited company on19th March 1983 and
its name was changed to Gujarat AmbujaCements Ltd. on 19th May 1983.
Today, Ambuja is the 3 rd largest cementcompany in India, with an annual plant
capacity of 16 million tonnes includingAmbuja Cement Eastern Ltd. and revenuein excess of Rs.3298 crores
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time
When Ambuja set up its first plant in 1986,the accepted time period for installing aplant was 3 years.
Ambuja, did it in less than 2 years. And with
a significantly lower capital expenditure
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Branding a commodity
Cement is a commodity, sold largely onprice. Ambuja Cement was the firstcompany to create a brand out of cementand command a premium.
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ExportsAmbuja Cement exports almost 17% of its
production in a very competitiveinternational environment. For the last tenyears, Ambuja Cement remains Indias
highest exporter of cement.This has been possible for two reasons
One, the quality of cement matches the bestin the world.
Two, the dedicated bulk cementtransportation capability at our Gujaratplant.
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MilestonesBuilding of a cement plant in record 13
months.2.8 kilometer conveyor belt running through
three hills was constructed in just 9
months.Introduced a completely new system oftransporting cement in India the bulkcement transportation by sea.
Introduced complete blast free limestonemining by using the surface miner inlimestone mining for the first time in India.
Created water reservoirs in used up minesand raised the water table in arid areas.
Plants have achieved the lowest pollution
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Recognition
National Award for commitment to quality by thePrime Minister of India.
National Award for outstanding pollution controlby the Prime Minister of India.
Eco-Gold Star by TERI
Best Export Award by CAPEXIL.Award for Corporate Social Responsibility
by Business World FICCIInternational AwardFor Rural Development
by Asian Management Institute (AIM)
ISO 9002 Quality Certification.ISO 14000 Certification for environmental
systems.
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Ambuja Cement
Most profitable cement company in India.Lowest cost producer of cement in the world. Its environment protection measures are at par with
the best in the world. The pollution levels at all itscement plants are lower than the rigorous Swissstandards of 100 mg/NM3.
The only cement company to be awarded with theNational Quality Award.
First cement company to first to receive the ISO 9002quality certification.
Received ISO 14000 Certification for environmental
systems. India's largest exporter of cement.Received Best Award for highest exports by CAPEXIL.First company to introduce the concept of bulk
cement movement by sea in India.
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PRODUCT DETAILS
Ambuja Cement is the flagship brand ofAmbuja. A unique outcome of internationalexpertise, this super performing cementhas been developed taking into
consideration the weather conditions inIndia and practices of home building.Ambuja Cement is available in PortlandSlag Cement (PSC) and Portland Pozzalona
Cement (PPC) variants.
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PROJECT
Project is titled as THE MARKET SURVEY OFVARIOUS CEMENT COMPANIES IN ROPARAND KURALI CITIES of Distt. Ropar inPunjab.
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Objective :-This project is about the study of various
market share occupied by different cementcompanies like ACC, Ambuja cement, Birlacement, Shree cement, Jaypee cement, JK
cement, Ultratech, And others.Project is also about the study of different
pricing pattern of different cementcompanies and their comparative study.
This project also include the differencebetween the billing price and selling priceof different cement companies.
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RESEARCH METHODOLOGY
RESEARCH DESIGN - EXPLORATORYRESEARCH
DESIGN
Area of StudyThe study has been carried out in the Ropar
and Kurali cities of Punjab.
Time Schedule
The study has been carried out in theperiod between 15th June 2009 to 015th July2009.
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DATA COLLECTION: -
The data used for the study is ofPrimarynature.
The sources for the data have been: -
Direct contact with the retailers and dealersof cement in both cities.
Other information required for the study hasbeen gained from the project guide.
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INTERPPRETATION :-
Dealers preference for the storage ofcement brand in Ropar City :-
Sr. No. Company No. of
Dealers/RTL
Percentage
1. Ambuja 5 20%
2. ACC 10 80%
3. Shree -
4. Jaypee -
5. Ultratech -
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Graphical representation of CementCompanies in Ropar city :---
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INTERPPRETATION:-
Obviously, maximum dealers, which areabout 80% , come with ACC and rest 20%are occupied by Ambuja since there areonly these two are the major players in the
market. Rest companies are trying tooccupy their position in the market.
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PRICING PATTERN : ROPAR
. .S r n o B r a n dN a m e
Product B illin gP rice
( ./ )Rs Bag
W h o le sal
e P rice( ./ )Rs Bag
R e ta ile rP rice
( ./ )Rs Bag.1 A m b u ja P P C - 2 4 5 2 4 8
.R s-2 4 8 2 5 2
.R s-2 5 0 2 5 5
.R s
.2 A C C P P C
-2 4 5 2 4 8
.R s -2 4 8 2 5 2
.R s -2 5 0 2 5 5
.R s
.3 S h re e - - - -
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Dealers preference for the storage of cementbrand in Kurali
City :-
INTERPPRETATION :-
Sr. No. Company No. of Dealers/RTLPercentage
1. Ambuja 1 30%
2. ACC 5 46%
3. Ultratech 1 11%
4. Birla 2 .5%
5. Shree 1 11%
6. JK 1 1.5%
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Cement Companies in Kuralicity
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INTERPPRETATION :-
Maximum of market share are occupied byACC almost 46%
and than Ambuja about 30%. Rest of marketshare are occupied
by Ultratech, JK, Shree and Birla.
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WHOLESALE PRICE/RETAILPRICE ANALYSIS FOR KURALI
Sr. no. Brand Name Product Billing Price(Rs./Bag)
Wholesale Price(Rs./Bag)
Retailer Price(Rs./Bag)
1. Ambuja PPC 249 Rs. 249 Rs. 250 Rs.
2. ACC PPC 249-252 Rs. 247-252 Rs. 250-255 Rs.
3. Ultratech PPC 252 Rs. 245 Rs. 250 Rs.
4. Birla PPC 244 Rs. - 250 Rs.
5. Shree PPC 248 Rs. - 252 Rs.
6. JK PPC 240 Rs. _ 244 Rs.
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FINDINGSREASONS STATED BY RETAILER FOR
BRANDPREFERENCE :-AMBUJA
Customers preference
Good cement, plastering work is good
Good name in market
Better packaging
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ACCPeople ask for ACC
Service is good
Very superior quality cement as compared toothers.
They have same price prevailing forwholesale at dealers/stockiest retailersend.
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GRASIM(Birla plus)Price is suitable as per consumer pocket
Rate & profit SHREE
Price is suitable as per consumer pocket
Rate & profit
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PROBLEM FACED BY:
STOCKIEST :-None of the stockiest had any complains
about any brands, in regards to the price,transport, service etc.
Stockiest are satisfied with the companiesservice.
RETAILERS REGRETS (Ambuja)
The stockiest occasionally inform about theprice change in market.
Price should be stabilized in market.
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SUGGESTIONS
A very exhaustive study has been made, keep inessence of the objective of the project. With theefforts put on the project a detailed analysis wasconducted and result were derived, based onthe results and market response few
suggestions are discussed below :-A price fluctuation creates problems for retailers
as the commitments of the price customersAt time it has been seen that the delivery
commitments on the side of the company isnot prompt, this creates a bad name and againbusiness is lost.
On interviewing Dealers/retailers the mostimportant thing they said was about the price
flexibility to play in the market
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CONCLUSION
Although Ambuja Cement Ltd. Has a goodname in the market and has second highestmarket share in both the cities that is Roparand Kurali but difference between first andsecond position is quite large that is 40-60%.
The main reason for the difference the weakmarketing strategy of the company and priceinstability of the company. So to increase themarket share of the company in the marketand to overtake ACC the company has tostabilize its price and have to come with a
strong marketing strategy.The market survey undertaken shows thateffective marketing efforts play a vital role increating the goodwill for the brand. Thedistribution channel of cement industry mustbe well designed and made effective thisensures timely availability of cement
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T H A N K UH A N K U